Data on blockchain is public and can be accessed by anyone by querying the smart contract storage or by checking the transaction details. Storage of sensitive data like passwords on chain might lead to data breach.
Data stored on the blockchain, even if designated as private, remains potentially obtainable through queries to the smart contract's storage or examination of transaction details. Utilizing plain text for storing passwords on the blockchain is an inadvisable strategy, as it exposes this sensitive information to potential hackers. Moreover, even when employing encrypted storage on the blockchain, there persists a risk that malicious entities could retrieve the encrypted password and, potentially, subject it to decryption via brute force techniques.
This is a high severity issue as it might lead to data breach
Manual code review
should not store passwords on chain
Private functions and state variables are only visible for the contract they are defined in and not in derived contracts. In this case private doesn't mean secret/confidential
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